E-commerce is Changing: Here’s How!
Did you know that in 2023 alone over 20.8% of retail purchases are expected to take place online?
The E-commerce sector is about to take up trillion dollars of market share in just three years from now. Additionally, by the year 2040, 95% of all customer purchases will be made online. More importantly, 70% of retail website visits worldwide happen on the phone, which shows how technology now has a major impact on E-commerce.
Emerging Technologies in E-commerce
Shopping online is no longer limited to searching for products and placing orders. Technology has changed the way people search, make buying decisions, and buy the product, some emerging technological advancements include:
Artificial Intelligence and Machine Learning
Personalized recommendations are no longer a luxury in E-commerce, it’s a demand that’s being fulfilled. All by the advent of machine learning. From analyzing data and making predictions to enhancing customer shopping experiences, AI has done it all. It has streamlined the whole E-commerce business process by:
- Giving visitors product recommendations based on their previous search preferences.
- Helping owners with inventory management to avoid stockouts or overstocking.
- Detecting and preventing frauds.
- Assisting customers with queries instantly (chatbots).
- Automatically optimizing prices of the product to deal with demand and competition.
Some of the best examples of AI in E-commerce include Myntra’s shop with an image search option and Sephora’s virtual assistant. Additionally, Amazon gives users product recommendations based on past searches and preferences and Shopify has come up with fraud detectors to identify fraudulent transactions.
Augmented Reality and Virtual Reality
AR and VR help customers dive deeper into their search and get more complete information about their product, just the way they used to while shopping physically. It gives customers an immersive experience (specifically VR, as AR gives users just a perception that too up to a limited extent).
As shoppers now want to know what they are getting before they make a purchase, AR and VR give them virtual try-on solutions. There are interactive user manuals available followed by preview placement options (how furniture will look in my living room).
On the other hand, when shoppers are aware of what they are buying, there are reduced returns. Businesses reach new customers and the engagement rate eventually increases.
Internet of Things
IoT is transforming every industry, and in E-commerce too it has left no stone unturned. By integrating IoT, data collection in real-time gets easier. Businesses can make informed decisions and provide personalized experiences to all users. For example, IoT-enabled shopping carts can analyze when the customer is running low on any product.
Virtual assistants that are IoT enabled are amazingly changing the way people shop like – Amazon’s Alexa and Google. Customers are simply talking to these assistants and the order is getting placed.
Changing Consumer Behavior
Now that we have unfurled the emerging technologies in E-commerce, let’s explore the changing consumer behavior and how it’s reshaping the whole E-commerce ecosystem:
Just the way customers used to search for convenience at a physical store, they want the same at any e-store. E-commerce has become the new normal. Things like smooth checkout, on-demand delivery, their preferences highlighted at the top, and the important layer of security is not an option anymore, it’s a necessity.
The list doesn’t end here, with the advent of the above technologies, customers now want to see products in real-time, they want personalized searches which only AI-powered- websites can do. If you are stepping into the E-commerce arena now, think about how to make the most of the available technology.
Connect to a website development company in Bangalore and let them bring convenience to you and your customers.
Customers are looking for new products and trends, the more you can give it, the better the experience you will deliver. Don’t make your customers scroll through feeds, in most cases, they hate it. Hence make sure, whatever your store is, it’s not cluttered or hard to find – work on your UI/UX.
If you are running a sale, send a push notification. If the customer is an active shopper of your site, give them personalized suggestions, or exclusive member offerings. Know your customers, even if the numbers are in the 1000s, technology has got your back. If you want to deliver an elevated experience with the inclusion of technology, contact an E-commerce website development company in Bangalore.
E-commerce and the Future of Retail
For us to talk about the future, it’s important to know the past and the present, so here’s what E-commerce is and will be in the near future:
Changed Brick-and-Mortar Retail:
E-commerce had a massive impact on traditional retailers and they are forced to adapt to this changing landscape. They are even investing in online channels to modernize their in-store experiences. Hence, we can also see changes in traditional brick-and-mortar stores as they strive to provide an enhanced shopping experience to compete with their online counterparts.
Smart Merger of Online and Offline Retail:
Retail stores are still not going out of business. In fact, the future of E-commerce includes the convergence of online and offline retail. Brick and mortar combined with click-and-buy, we can see concepts like “click-and-mortar” emerging. Stores, in the future, will offer consumers a unified shopping experience, where they can browse online and pick up in-store or vice versa, ensuring they get the best of both worlds.
The future of E-commerce will undoubtedly be full of exciting changes and innovations for both businesses and buyers. However, remember, in the era of E-commerce, out of sight means out of mind. Be on your toes when it comes to changes in the E-commerce landscape. Keep learning.
Let us know what you think. Do you have any predictions for the future of E-commerce in 2024 and beyond? Was there anything we missed that you’d like to learn more about? Let us know in the comments section below—we read them all!